The Geregu Power Plc, the first and only power generating company to list on the Nigerian Exchange Limited, has displayed its adherence to post-listing obligations by filing its nine months results ended September 30, 2022.
The results showed a revenue of N39bn in 2022, compared with N54bn in the corresponding period of 2021.
The decline, according to the company, is as a result of a nationwide force majeure declared by Shell Petroleum Development Company Limited on the Forcados oil terminal pipeline, gas supplies to the plant by its primary gas supplier was largely impacted in the third quarter.
Commenting on the revenue shortfall, the company explained in the unaudited financial statements for the third quarter of 2022, that the nationwide Force Majeure played a negative role.
It said, “The decline in revenue was largely due to gas supply constraints in Q3, 2022, which eventually led to the drop in the capacity delivered and energy sent out of 1314439Mwh as at 30 September 2022 as against Capacity delivered and Energy sent out of 1855920Mwh as at 30 September 2021.”
In cushioning the effect of the shortfall, the company said it adopted an effective cost saving strategy that saw administrative cost reduced from N10.9bn to N2.9bn in 2022.
As a result, the operating profit stood higher at N16bn, up from N15.1bn in the nine months of 2021.
However, an increase in finance cost, largely attributable to the medium-term bond of N40.085bn issued by the company in 2022 for its planned acquisition, moderated the profit before tax and profit after tax to N13.9bn and N10bn respectively.
The power generating firm ended the period under review with higher total assets of N171bn, up from N115bn in 2021.
GPP had its 2.5 billion shares listed by introduction on the NGX at N100 per share, translating into N250bn.
The disclosure of nine months financial results ended September 30, 2022 exudes the high level of corporate governance and adherence to post-listing obligations as the company has filed its nine months.
Recall that the Executive Chairman, GPP, Femi Otedola, had described the listing as an actualisation of a vision to bring world-class standards in governance, sustainability, and business processes to the company and the Nigerian electricity sector.
He said, “Listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders.”
Also, the Chairman, NGX, Abubakar Mahmood, said the organization was pleased that GPP joined the prestigious group of companies listed on our main board, which will differentiate it as a professionally run power company with high standards, having met NGX’s listing criteria.
“A Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders. It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation,” he said.
